Strengthening regulation and supervision have reduced risks in the banking sector – S&P
On 5 December 2025, the international rating agency S&P Global Ratings upgraded its assessment of the industry risk trend in the banking sector of Kazakhstan from stable to positive. This change is due to strengthening of regulation and supervision over the past several years.
The financial regulator's key measures include regular asset quality reviews (AQR), transition to the SREP supervisory model, risk management in banks, and measures to control the growth rate of consumer lending. By the end of the current year, the agency's analysts expect retail lending growth to slow to 18-20%.
S&P indicates that a new mechanism for resolving insolvent banks is planned for next year, including introduction of a minimum level of liabilities subject to conversion into capital for backbone banks. These changes may contribute to further improvements in the quality of supervision.
According to the S&P report, the measures taken by the Agency for Regulation and Development of the Financial Market helped prevent potential crises and operational disruptions in the banking system. Analysts of the agency highlighted sector's resilience to macroeconomic risks, as well as the low level of non-performing loans (5.5-6.0% in 2025) and high reserve coverage (about 55%).
The report noted that S&P Global Ratings is prepared to improve its industry risk assessment if further progress is made on regulatory and supervisory initiatives.
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